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Planned Silken-Brand London Luxe Hotel Halts ConstructionJuly 23, 2009 By: Jena Tesse Fox
A luxury new London hotel and apartment development designed by Norman Foster has fallen into administration.
The 11-story complex, which is situated on The Strand on the site of the former Marconi Building, is owned by Urvasco, a subsidiary of Spanish hotel chain Grupo Hotelero Uravasco.
Construction of the building at 337-337 The Strand stalled late last year while Urvasco sought more funds, but has remained in an incomplete state since then. Banco Bilbao Vizcaya Argentaria (BBVA), Spain’s second biggest bank, has appointed PricewaterhouseCoopers as receivers of the never-named hotel.
PwC said that Urvasco was formed to develop the site of the Grade II listed building that was the location of the first-ever radio broadcast. The hotel was to be managed under the Silken hotel brand.
Urvasco secured a $138.2 million debt facility from BBVA when it bought the site in 2005 to cover the purchase and conversion.
PwC claims it anticipates a number of potential purchasers, after rumors that the developers had gone into administration earlier this year sparked a flood of interest from potential buyers.